Geopolitical tensions in the Middle East could drive oil prices as high as $120 per barrel according to JP Morgan, benefiting Exxon Mobil's earnings outlook. Applying the Graham Number, Exxon Mobil's intrinsic value ranges from $103 to $134 per share, depending on EPS scenarios.

European stock markets started the trading week on a cautiously optimistic note Monday, with major indices posting modest gains in early dealings.

Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.

Baker Hughes CEO Lorenzo Simonelli confirms all Middle Eastern projects are operating normally despite escalating tensions between Israel and Iran, while also acknowledging potential impacts on oil supply.

Analysts said OPEC might not see any urgency to shift policy, as the surge in prices was driven by a rising risk premium rather than changing market fundamentals.

Rising Middle East tensions have driven oil prices higher, potentially boosting Texas Pacific Land's future earnings. Read why TPL stock is a hold for now.

Most Asian stock markets retreated on Monday and currencies edged down against a resilient dollar as the escalating conflict between Israel and Iran weighed on risk sentiment, while investors braced for several central bank meetings this week.